THEN WHAT?
• find a broker.
– only person that can make an order to buy or sell stocks.
• two types of brokers that every brokerage firm has!
– Stockbroker
• researches investments,
• helps make goals,
• and gives advice on investing. 1
– Discount brokers
• do not offer advice
• do no research
• just the middle person in the transactions.
So which broker do I go with?
&
What are my Options?
Beginner Investor
You are an inexperienced investor and want a userfriendly broker to make long-term investments.
• What to look for in a broker:
– Commission-free mutual funds and ETFs (Exchangetraded fund) with low expense ratios
– Customer service (with access to brick and mortar
branches)
– Easy to use online interface
– Low account minimums and no account inactivity fees
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Do-it-yourself Investor
You are familiar with investing and keep up to date
on the markets. You track the performance of
your investments and your goals are still longterm, but you take a more active role in
managing your portfolio.
• What to look for in a broker:
–
–
–
–
Large variety of low-cost mutual funds and ETFs
Basic tools and research reports
Customer service and mobile access
Low commissions
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Active Investor
You trade frequently and look to capitalize on short-term
movements in the market. You are an extremely
sophisticated investor and have a coherent strategy that
actually warrants active trading.
• What to look for in a broker:
– Low costs (trade commissions, price per option, exercise fees)
– Asset class availability
– Great trade execution (if you are an algorithmic trader) and afterhours trading
– Sophisticated research, data analysis tools and real-time data
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Finding information!
•News headlines
•BioCryst Pharmaceuticals sold Roche an
exclusive license to develop and
commercialize BioCryst's phase I
compound, BCX-4208, for the prevention of
acute rejection in transplantation and for
the treatment of autoimmune diseases.
•Find the ticker symbol
BCRX
Here is what the stock did for the day the new story was published…
Last Trade:
16.24
Trade Time:
4:00PM ET
Change:
4.43 (37.51%)
Prev Close:
11.81
Open:
13.60
year1y Target Est:
17.00
Day's Range:
$13.59 - $16.50
CETV
• A great stock to have according to!
Jim Cramer
Here is what the stock did for the day the new story was published…
Last Trade:
54.12
Trade Time:
4:00PM ET
Change:
0.64 (1.20%)
Prev Close:
53.48
Open:
56.45
year1y Target Est:
59.56
Day's Range:
54.00 56.50
52wk Range:
29.36 - 58.17
• RIGEL PHARMACEUTLS
• Last Trade:$21.92
• Delayed quote data Report indicates (RT-ECN):
• $7.98
$13.94 (63.59%)
• WHAT SHOULD YOU DO??
– SHORT SELL!!!
• WHAT ABOUT THIS STOCK?!!
• LAST TRADE - $32.58
• News report states it will – increase UP TO • $332.93
921.88%
• Mistake in the message - only went up to $33.29
Long term investment
homework
• One example in terms of technical analysis!
Anything you see stick out – or raise a question?
• NEW YORK, Sept 27 (Reuters) - Leading microchip maker Intel Corp
(INTC.O: Quote, Profile, Research) will offer online training to help
teachers incorporate technology into their lesson plans in a program it
estimates is worth $300 million over four years.
•
Intel made the commitment in conjunction with the Clinton Global Initiative's third
annual summit, which requires attendees to commit to philanthropic projects related
to areas such as global warming, health, education and poverty.
•
"We teach teachers how to use (technology) in the classroom, not just in the areas
of math and science but we train teachers how to use technology to make art,
history, language or any subject more exciting to kids," Intel Chairman Craig
Barrett told Reuters in an interview on Thursday.
• The new program is part of Intel's annual global investment of more than
$100 million in improving education in schools and universities.
• In its latest quarterly report, Intel posted a profit of $1.3 billion on
revenue of $8.7 billion.
• Intel said it would work with the governments of 15 countries to
develop online courses to expand the reach, and flexibility, of in-person
training programs that the company has supported for seven years.
6 MONTHS
1 YEAR
5 YEARS
MAX LIFE
Splits: Oct 29, 1987 [3:2], Jun 7, 1993 [2:1], Jun 19, 1995 [2:1], Jul 14,
1997 [2:1], Apr 12, 1999 [2:1], Jul 31, 2000 [2:1]
How to calculate number of
shares when stock splits
•
•
•
•
Splits: Oct 29, 1987 [3:2],
Jun 7, 1993 [2:1],
Jun 19, 1995 [2:1],
Jul 14, 1997 [2:1],
Apr 12, 1999 [2:1],
Jul 31, 2000 [2:1]
Take current amount of shares – (100 Shares)
multiply by first number in [3:2] then
divide by second number in [3:2]
100 x 3 = 300 / 2 = 150 shares as of 10/29/87
Try this one!
Try this one!
Splits: Jul 12, 1995 [2:1],
Mar 7, 1997 [103:100],
Mar 6, 1998 [103:100],
Try this one!
Splits: Jul 12, 1995 [2:1],
Mar 7, 1997 [103:100],
Mar 6, 1998 [103:100],
Can you have 212.18 shares?
You MUST round DOWN
Try this one!
Splits: Jul 12, 1995 [2:1],
Mar 7, 1997 [103:100],
Mar 6, 1998 [103:100],
Jul 14, 1998 [2:1],
Mar 5, 1999 [103:100],
Mar 3, 2000 [103:100],
Mar 2, 2001 [103:100],
Mar 1, 2002 [103:100],
Feb 28, 2003 [103:100],
Feb 27, 2004 [103:100],
Mar 9, 2005 [103:100],
Mar 8, 2006 [103:100],
Mar 7, 2007 [103:100],
Mar 6, 2008 [103:100],
Mar 6, 2009 [103:100]
Can you have 212.18 shares?
Try this one!
580 shares
If you did NOT round down should
have 587 shares
WHY LET TR STOCK SIT?
• PURCHASED 100 SHARES 1975 @ $27.75
– INITIAL INVESTMENT $2,775
• TODAY I HAVE 580 SHARES @ $29.84
– INVESTMENT VALUE = $17,307.20
Calculate the following
On March 13, 1986 your parents purchased
you 100 shares of Microsoft @ $25.50 per
share.
What was their Initial Investment = ???
100 x $25.50
= $2,550
Started with 100 shares
1.
2.
3.
4.
5.
6.
7.
8.
9.
Sep 21, 1987 [2:1],
Apr 16, 1990 [2:1],
Jun 27, 1991 [3:2],
Jun 15, 1992 [3:2],
May 23, 1994 [2:1],
Dec 9, 1996 [2:1],
Feb 23, 1998 [2:1],
Mar 29, 1999 [2:1],
Feb 18, 2003 [2:1]
How many
shares did
you end up
with?
28,800 Shares
Calculate your profit/loss if you sold all
your shares yesterday at 3:00PM
28,800 x $37.54
= $1,081,152
Calculate your profit/loss if you sold all
your shares yesterday at 3:00PM
28,800 x $37.54 = $1,081,152
$1,081,152 – $2,550 (Initial Investment) =
PROFIT of $1,078,602
Was there any advantage to holding them and
selling all your shares at 5:09PM?
Was there any advantage to holding them
and selling all your shares at 5:09PM?
28,800 shares x 0.09
= $2,592
If you held them until today you could have “lost”
$1,152 from your portfolio value
Using NEWS REPORTS
Harley CFO Sees Earnings Below Last Year
Thursday, November 9, 9:42 pm ET
BOSTON (Reuters) - Harley-Davidson Inc.'s (NYSE:HDI - News) fourth-quarter earnings will be lower than what the
company earned in the same quarter last year, the motorcycle maker's chief financial officer and CEO-elect said in today’s
statement.
Using GRAPHS and/or CHARTS
Using the NUMBERS and RANGES
Last Trade:54.95
Prev Close: 55.24
Open: 54.95
Change:
0.29 (0.52%)
Day's Range: 54.90 - 55.00
52wk Range: 44.40 - 62.49
Set up your account to start trading
today!
Go to my Web page and click on
Consumer Economic Projects
http://www.trschools.k12.wi.us/faculty/LFEEST/consumereconomicprojects.cfm
Click on Stock Market Game
and follow instructions